Can I charge different customers different prices?

Charging different prices to different customers is generally legal. The practice could be illegal, however, if the reason for the difference were reliance on a “suspect category” – race, religion, national origin, gender, or the like. The practice could also be legal if it violates antitrust or price-fixing laws.

Is price discrimination an ethical strategy?

Many people consider price discrimination unfair, but economists argue that in many cases price discrimination is more likely to lead to greater welfare than is the uniform pricing alternative—sometimes for every party in the transaction. It concludes that price discrimination is not inherently unfair.

Is differential pricing legal?

Price discriminations are generally lawful, particularly if they reflect the different costs of dealing with different buyers or are the result of a seller’s attempts to meet a competitor’s offering.

Why is it unlawful to charge different customers different prices?

Price discrimination is made illegal under the Sherman Antitrust Act. If different prices are charged to different customers for a good faith reason, such as a an effort by the seller to meet the competitor’s price or a change in market conditions, it is not illegal price discrimination.

What are the unethical marketing practices in relation to pricing?

Another common unethical pricing strategy is price discrimination. Price discrimination is when a retailer sells the exact same product or service at different prices to different people. Instead of the same price across all markets, retailers adjust prices based on what they think the consumer will pay.

What are some pricing practices which are considered unethical in marketing?

Here are the 5 ethical pricing issues that hurt business the most:

• Price fixing: Collusion at its worse.
• Bid rigging: Favoritism.
• Price discrimination: Anti-favoritism.
• Price skimming: Discriminating through time.
• Supra competitive pricing: Monopoly gouging.

What are some ethical issues involved in price fixing?

5 ethical pricing issues that hurt businesses

• Price fixing: Collusion at its worse.
• Bid rigging: Favoritism.
• Price discrimination: Anti-favoritism.
• Price skimming: Discriminating through time.
• Supra competitive pricing: Monopoly gouging.

How much does a SaaS company charge per user?

The per-user pricing model The de facto pricing model for many SaaS companies, per-user pricing is just as it sounds. Companies charge a fixed rate per month for each user on an account—for example, G Suite (whose pricing we’ll look at in more detail later) charges a flat $6 per user, so 10 users would cost $60 per month.

What are the different types of SaaS pricing models?

The Ultimate Guide to SaaS Pricing Models, Strategies & Psychological Hacks. 1 1) Flat Rate Pricing. Flat rate pricing is probably the simplest way to sell a SaaS solution: you offer a single product, a single set of features, 2 2) Usage Based Pricing. 3 3) Tiered Pricing Strategy. 4 4) Per User Pricing. 5 5) Per Active User Pricing.

Is your SaaS pricing strategy killer?

Yes, nailing your pricing strategy is crucial to SaaS success—but it doesn’t have to be that difficult. Let’s take a dive into SaaS pricing: why it’s important, how to build your own killer pricing strategy, and some examples of great pricing strategies and models from the real world. 1. How is SaaS pricing different? 2.

What are the benefits of flat rate pricing for SaaS products?

Offering a single product at a single price makes it possible to focus every ounce of sales and marketing energy on selling a single, clearly-defined offer. Easier to communicate. SaaS pricing models can get complicated, and quickly – but flat rate pricing is quick and easy for any would-be customer to understand.